$10 million loan awarded to Michigan CDFI Coalition to support financing for small businesses, affordable housing, and community spaces

LANSING, Mich.  – Today, the Michigan Economic Development Corporation (MEDC) announced Michigan Strategic Fund (MSF) Board approval for a loan of up to $10 million to the Michigan CDFI Coalition to increase lending capital availability for Michigan-based non-depository Community Development Financial Institutions (CDFIs).

CDFIs are mission-based lenders that provide flexible and affordable financing for a range of purposes, including small businesses, affordable housing, and community spaces. There are at least 45 CDFIs operating in Michigan, including 27 loan funds and 18 credit unions.

The funding will contribute to a pooled loan fund to be administered by the Michigan CDFI Coalition, a nonprofit organization formed in January 2023 to collaborate on policy, lending solutions, and programming.

Michigan will become a national model by leveraging public resources to support CDFIs in this way, demonstrating leadership in an uncertain national lending landscape. This unique public-private partnership approach allows the state’s CDFIs to have a greater impact through lending and technical support.

“Today’s approval by the MSF Board invests in the mission of the Michigan CDFI Coalition and its network of Community Development Financial Institutions, providing tools and resources to aspiring small business owners, homebuyers, and communities across the state,” said Quentin L. Messer, Jr., CEO of the MEDC and MSF Board Chair. “From neighborhood revitalization projects to creating access to capital, the MEDC is grateful to the MSF for its ongoing support of our partners’ efforts in creating the conditions for enhanced economic opportunities for all Michiganders.”    

“We are incredibly thankful for the support and partnership with MEDC and what this loan will help us accomplish,” said Elissa Sangalli, Chair of the Michigan CDFI Coalition and President and CEO of Northern Initiatives. “This loan will help us build and launch our first statewide pooled loan fund that will help our CDFI community provide flexible capital so residents can fulfil dreams of starting a small business and supporting housing and neighborhood projects in local communities.”

The non-depository CDFIs eligible for consideration for funding are Chi Ishobak, Inc., Cinnaire Lending Corporation, CORE Community Partners, Detroit Development Fund, Grand Rapids Opportunities for Women, Great Lakes Women's Business Council, Invest Detroit, Lake Superior Community Development Corporation, MCC/Magnet Lending, Metro Community Development, Inc., MI Assistive Technology Fund, Michigan Women's Foundation, Northern Great Lakes Initiatives, Northern Shores Community Development, Opportunity Resource Fund, ProsperUS Detroit, Rende Progress Capital, and Venture North Funding and Development.

According to data provided by U.S. Treasury, from 2005-2023 Michigan CDFIs deployed $6.3 billion in loans, which funded more than 26,000 microenterprises and small businesses, created or retained more than 82,000 jobs, and developed 28.9 million sq. ft. of real estate.

Among those business owners supported by the Michigan CDFI Coalition’s network of partners is Chef Ameneh Marhaba, owner of Little Liberia, Michigan’s only dedicated Liberian restaurant. Located in Detroit’s East English Village neighborhood, Little Liberia is situated within The Ribbon, a mixed-use development supported in part by an investment from the MEDC.

According to the Michigan CDFI Coalition, Chef Marhaba has taken part in the Entrepreneur Training Program with ProsperUs Detroit since 2021, as well as engaged in additional technical assistance and capital support. Little Liberia opened in March 2026, reflecting the impact of investing in Michigan’s small business owners throughout their entrepreneurship journeys.

Other recent examples of CDFI impact include the transformative redevelopment Cadillac Lofts project and new housing in downtown Grayling at Sawmill Lofts, among others.

“Michigan is home to the largest CDFI coalition in the country, and for the past four years, I have been proud to champion and defend the resources that allow these organizations to do their work," said state Sen. Mary Cavanagh (D-Redford Township). "CDFIs are economic development in action, helping small businesses grow, supporting first-time homebuyers, and investing in revitalization projects that strengthen our neighborhoods and commercial corridors. When we invest in Michigan’s CDFIs, we are investing directly in the people, small businesses, and communities that are building a stronger economic future for our state.”

About Michigan Economic Development Corporation (MEDC)

The Michigan Economic Development Corporation is the state’s marketing arm and lead advocate for business development, job awareness and community development with the focus on growing Michigan’s economy. For more information on the MEDC and our initiatives, visit www.MichiganBusiness.org. For Pure Michigan® tourism information, your trip begins at www.michigan.org. Join the conversation on: Facebook, Instagram, LinkedIn, and Threads.